Balanced Scorecard 1

University of Phoenix

Strategic Plan Balanced Scorecard

BUS/475

Rhonda Brogan

January 10, 2011

 Balanced Scorecard 2

Strategic Plan Balanced Scorecard

Working Woman’s World is a conceptualized business that has been created

throughout the past several weeks. A comprehensive SWOTT analysis has been

completed to analyze the businesses strengths, weaknesses, opportunities, threats, and

trends. The following paper will use the standard format for a balanced scorecard to

define the strategic objectives and value chain needed to start the main mission and vision

of Working Woman’s World.

Value Chain

A value chain shows the relationship between components of the strategic plan.

The relationships work through all four areas of the balanced scorecard. These include

financial, customer, internal, and learning and growth. The following shows the value

chain for Working Woman’s World.

Working Woman’s World Value Chain

Financial Revenue Growth Positive Cash

Flow
Customer
Customer Customer Customer Customer
Acquisition Education Relationship Retention
Internal Business Processes Market Research Best Practices Technology

Learning and Growth

Management Evaluation Product
System System Knowledge

Financial
 Balanced Scorecard 3

In the diagram above it shows the two financial objectives for Working Woman’s

World as revenue growth and positive cash flow. To achieve the goal of revenue growth

Working Woman’s World must have enough revenue to cover any costs associated with

development and maintenance of the value chain. Without revenue growth the other

components cannot exist. Having a positive cash flow is the way Working Woman’s

World will be able to continue to stay debt free. This does not mean that there will be no

debt, but the cash flow can still be positive. This measure is to ensure there is enough

cash flow available to cover business operations without the need to secure debt. This

will help reduce or even eliminate the need for debt.

Customer

The customers of Working Woman’s World generate the revenue and cash flow

needed. Working Woman’s World will need to acquire, educate, build relationships, and

retain their customers to continue revenue growth and positive cash flow. Working

Woman’s World will need to be creative in acquiring new customers. Once new

customers are acquired they will need to promote word of mouth with these customers to

bring in new customers. Once they have acquired customers they will need to educate

them on the services that are provided and how the process works. A customer that is

knowledgeable of the processes is more likely to come back. Returning customers will

allow the relationship with them to blossom and grow. All of these items will lead to

retention of the customers.

Internal Business Processes

 Balanced Scorecard 4

Working Woman’s World will need to become proficient at certain internal

processes to continue to provide valuable services for their customers. Market research is

key to finding and acquiring customers. Providing high end quality used women’s

clothing and be fair and knowledgeable about pricing and clothing will promote

customer’s reliability to Working Woman’s World. The best practices of the business

will always need to be in place. This would include being particular of the clothing

accepted and providing fair pricing for both the seller and the buyer of the clothing.

Working Woman’s World will need to keep up on technology to help with inventory and

keep track of the monies owed to sellers. Without updated technology things could

become unreliable and customers will walk away.

Learning and Growth

Working Woman’s World will need to develop an infrastructure that will support

all of its internal business processes. Management systems will help do this. Management

systems will help management to keep track of information on employees and inventory.

It will also lend a hand in the keeping track of customers and repeat customers. This will

help management to know where and when more market research is needed to acquire

new customers. Working Woman’s World will also need to put an evaluation system in

place. This will help them keep evaluating the procedures and employees. Looking at

procedures and employees and keeping things up to date will ensure that customers are

being handled at the highest possible quality. Product knowledge is invaluable in this

type of business. Employees and management need to know what items are of the

greatest want, what items are of the highest quality, and what these items are worth for

resale.
 Balanced Scorecard 5

Working Woman’s World Balanced Scorecard

In alignment with the value chain for Working Woman’s World below is a table

with the strategic objectives needed.

Objective Measurement Target

Financial Revenue Growth Total Sales $200,000 per year

within 5 years of
opening

Positive Cash Flow Amount in Dollars Three months

operating surplus

Customer Customer New customers 500 customers

Acquisition within the first 6
months of operation

Customer Education Signed procedures 100%

Customer reliability 90%

Relationship

Customer Retention Return customers 80%

Internal Business Market Research Knowledge of 90%

Processes competitors

Best Practices Knowledge of 90%

customers needs and
wants

Technology Up to date Software not older

technology than 2 years

Learning and Management Software for 95% of procedures

Growth Systems monitoring monitored

Evaluation Systems Software for 95% of procedures

monitoring evaluated

Product Knowledge Product information Not to be older than

available to 1 year of product
employees knowledge
 Balanced Scorecard 6

Conclusion

Working Woman’s World has developed a value chain in order to achieve

objectives that are presented in the balanced scorecard. Working Woman’s World can

begin their business and know how they want to strive to meet objectives that they have

outlined. It is imperative for a business in the planning stages to outline these types of

objectives to become successful and know where they want to be.